Child benefit charge - 1% of benefit per £100 of income between £50,000 and £60,000

* Savings income falling into the first £5,000 may be taxed at 0% for certain low income earners.

** When the gross income is £1,000 or less. May alternatively be deducted from gross income instead of the actual expenses.

*** £500 for higher rate and £nil for additional rate taxpayers.

**** Investment limit increases for investment in knowledge-intensive companies receiving investments under the EIS and VCTs rules. The annual limit for individuals investing in knowledge-intensive companies under the EIS will be increased to £2 million, provided that anything above £1 million is invested in knowledge-intensive companies. The annual EIS and VCT limit on the amount of tax-advantaged investments a knowledge-intensive company may receive is increased to £10 million.

Scotland

2018/19

Band

Rate

£11,850*-£13,850

Starter

19%

£13,851-£24,000

Basic

20%

£24,001-£44,430

Intermediate

21%

£44,431-£150,000**

Higher

41%

Over £150,000

Top

46%

* Assumes individuals are in receipt of the personal allowance.

** Those earning more than £100,000 will see their personal allowance reduced by £1 for every £2 earned over £100,000.

2019 and beyond - England, Wales & Northern Ireland only

It is intended to increase the personal allowance to £12,500 and the higher rate threshold to £50,000, but no timetable for these increases has been announced.

Once these limits have been attained they will, in future, be index linked by reference to the consumer prices index (CPI).

From 6 April 2019, a Welsh rate of income tax is to be introduced. This tax will continue to be collected by HMRC.

Termination payments over £30,000 which are subject to income tax after April 2018 will also be subject to employers national insurance contributions.

Income tax will only be applied on the equivalent of an employee’s basic pay if the employee has not worked the notice period.